Financial Experts only please

ACG 2021 Final Assessment

Short Answer. 8 points each.

1. Why is the separation of duties an important control activity in a good system of internal control?

2. How is the account Allowance for Uncollectible Accounts presented in the financial statements, and what

purpose does this presentation serve?

3. What is goodwill and when may it be recorded?

4. A company enters into a contract to purchase a certain quantity of goods from another company during the

following month. At this point, would a liability exist? Explain why or why not.

5. When a bond sells at a premium, what is probably true about the market interest rate versus the face interest

rate? Discuss.

6. When a bond sells at a discount, what is probably true about the market interest versus the face interest rate?

Discuss.

Problems

1. Prepare in proper form the stockholders' equity section of the balance sheet from the following selected

accounts and balances taken from the adjusted trial balance of Cooper Corporation as of December 31, 20x5. 17 Points.

Partial Adjusted Trial Balance

Account Debit Credit

Common Stock—$10 par value, 200,000 shares authorized, 110,000

shares issued and outstanding 1,100,000 Preferred Stock—$100 par value, 9 percent cumulative, 40,000 shares

authorized, 8,000 shares issued and outstanding 800,000

Additional Paid-in Capital, Preferred 30,000 Additional Paid-in Capital, Common 800,000

Retained Earnings 180,000

2. The following 20x5 information relates to Taylor, Inc.: 8 points each.

Net Income $365,000

Depreciation Expense 96,000 Amortization of Intangible Assets 11,000

Beginning Accounts Receivable 420,000

Ending Accounts Receivable 439,000 Beginning Inventory 516,000

Ending Inventory 560,000

Beginning Prepaid Expenses 48,000

Ending Prepaid Expenses 42,000 Beginning Accounts Payable 119,000

Ending Accounts Payable 146,000

Purchase of Long-Term Assets for Cash 616,000 Cash from Issuance of Long-Term Debt 200,000

Issuance of Stock for Cash 160,000

Issuance of Stock for Long-Term Assets 110,000 Purchase of Treasury Stock 64,000

Sale of Long-Term Investment at Cost 39,000

a. Calculate the net cash flows from operating activities. Show your work. b. Calculate the net cash flows from investing activities. Show your work.

c. Calculate the net cash flows from financing activities. Show your work.

d. Calculate the net change in cash. Show your work.